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Spot Review 11 - Response
STATUS: DRAFT
Author: Andrew Winn
Version: 3
Last edited by: Bond Pearce
Last edit date: 17/04/2013
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Horizon Spot Review - Response
$R011: Giro Payments — Apparent Loss of Audit Trail
Executive Summary
It is noted that this Spot Review does not raise any suggestion that there is an error in Horizon.
Rather, it is focussed on Post Office procedures and branch processes.
There is no loss of audit trail for Giros because:
1. Branches are able to review on Horizon all transactions (including the deposit or withdrawal
of Giros) in the last 60 days; and
2. Branches are able (and indeed required) to print and retain a Daily Giro Report showing all
Giro deposits and withdrawals on a given day.
Transaction corrections are in the vast majority of cases supported with either evidence or a
description of the error in question. This allows branches to investigate any Giro transactions against
the records retained in branch.
Post Office Ltd is confident that adequate information is available to Sub-postmasters (SPMRs) for
them to review Giro transactions.
Spot review scope
Second Sight has been provided with Horizon Transaction Data from 1 March 2007 to 31 January
2012 recorded by Yetminster 267518. From the Spot Review, the following key issues have been
identified:
1. SPMRs do not have access to records of individual Giro transactions to investigate
subsequent transaction corrections.
2. Horizon does not print off branch receipts ("slips") for Giro transactions.
3. SPMRs cannot properly investigate transaction corrections in relation to Giros.
General background
"Giros" refers to a method of making deposits and withdrawals from a banking system operated by
Girobank. This is distinct from Green Giros which are used for benefit payments. Green Giros are
not considered in this response.
Reference to Horizon means Horizon Online unless stated otherwise.
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The key steps in the process for transacting a Giro deposit or withdrawal is as follows:
1.
Customer presents a Giro at the counter.
SPMR enters the transactions details in to Horizon (deposit / withdrawal / amount / etc.)
Horizon produces a transaction receipt for the customer.
At the end of each day, the SPMR prints a Giro remittance slip from Horizon that shows
details of each Giro transaction that day.
The SPMR places the Giros and the Giro remittance slip in a pouch and sends this to the Post
Office [ash centre?).
After printing the Giro remittance slip, Horizon automatically prints a Giro Daily Report. This
report shows details of all Giro transactions that day.
The [Cdunters manual?) requires that SPMRs keep a hardcopy of the Giro Daily Report for
their own records. [PLEASE PROVIDE A COPY OF THIS'SECTION OF THE MANUAL?)
Issue 1: SPMRs do not have access to records of individual Giro transactions to investigate
subsequent transaction corrections.
This is incorrect. SPMRs have access to the following records:
1.
Horizon retains details of all transactions (including Giros) in the last 60 days. SPMRs are
free to interrogate this information as required. (Note: the old Horizon system only retained
records for 42 days which is the source of the reference to 42 days in the Spot Review).
After this 60 day period, SPMRs can use the Giro Daily Report to investigate historic Giro
transactions. These reports will present a complete transaction history for Giros if the SPMR
has properly followed the correct procedure (as described above).
SPMRs can also choose to print a "stock unit" report each day which will show the total
number and value of Giros transacted each day. This report does not present a line by line
breakdown but can be used to ensure that other reports (such as the Giro Daily Report) have
been properly produced, remitted and retained in branch.
Issue 2: Horizon does not print off branch receipts ("slips") for Giro transactions.
This statement is correct. Horizon only prints a receipt for the customer. It does not print a receipt
for the SPMR to retain (commonly known as a branch receipt). The printing of branch receipts is
unnecessary given the other information available to SPMR — see Issue 1 above.
The Spot Review suggests that historically Horizon did print branch receipts for Giros. For the sake of
clarity, no version of Horizon has ever printed branch receipts for Giro transactions.
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Issue 3: SPMRs cannot properly investigate transaction corrections in relation to Giros
Transaction corrections are issued to branches where there has been an error in the processing of
Giros. The key steps in the process for issuing a transaction correction for a Giro are as follows:
1.
An error is identified. Typically this is because the number or content of the Giros recorded
on Horizon by the SPMR as being remitted to the [cash centre] is different to the number or
content of the Giros received by the cash centre. Sometimes, the error is generated by a
discrepenacy between Girobank's records and the Horizon record as input by the SPMR.
There are however many other possible causes of an error.
Post Office investigates the error. This may involve informally contacting the SPMR at an
early stage before a transaction correction is issued.
If the investigation concludes that the error was caused in branch, a transaction correction is
issued to the branch.
The time taken to issue a transaction correction varies depending on a number of factors
including the nature of the error and the response of Girobank and the SPMR to Post Office's
investigations. Further, some errors are only discoverable by customers who may take
weeks/months to identify the error before contacting Girobank / Post Office. Post Office
tries to investigate all alleged errors itself before engaging SPMRs so not to waste SPMRs'
time on issues that can often be resolved without their involvement.
In the vast majority of cases the transaction correction will be supported by either (1)
documentary evidence or (2) a commentary explaining the error on the face of the
transaction correction. Post Office endeavours to provide a clear picture of the error to the
SPMR with every transaction correction. However, given the significant volume of
transaction corrections processed everyday, it is accepted that a very small number may not
contain complete information.
The SPM can contact Post Office at any time to request more information about the
transaction correction.
The SPM has a choice of whether to accept or dispute a transaction correction. The dispute
process is described in the "Horizon online help" at page btsb31.
Given the above process and the information available to SPMRs described in Issue 1, it is possible
for SPMRs to properly investigate any transaction correction regarding a Giro.
It is noted that various other in-branch processes may also reveal an error before a transaction
correction is issued (such as end of day processes and end of trading period processes).
Automated Payments
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In an e-mail chain headed “SRO11 - Two Clarifications Required” and dated 6 March 2013 it was
indicated that this spot review may also extend to Automated Payments. To the extent applicable,
the above processes are similar to those for Automated Payments.
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